What is the best practice for the timing for closing the AP subledger? Last day of the month? T-1? etc. If an AP subledger does not exist, e.g. S4 Hana, what is the best practice for cutting off payments?
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Director of Finance in Consumer Goods7 months ago
We close our AP Ledger on T-1 in order to ensure posting of accruals if any for revenue recognition process. Similar approach can be followed.Director, Finance7 months ago
T-1 or T-2 to allow sufficient time for processing and resolving any outstanding transactions or discrepancies before finalizing the month-end financials, but that depends on the processes in place and that can change from company to company. Even if an AP subledger does not exist, such as in SAP S/4HANA where the traditional subledger concept may not apply in the same way, the best practices for cutting off payments would still involve similar principles.